NEW YORK, March 2, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against CTPartners Executive Search Inc. ("CTPartners" or the "Company") (NYSE:CTP) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, is on behalf of a class consisting of all persons or entities who purchased CTPartners securities between February 26, 2014 and January 28, 2015, both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased CTPartners securities during the Class Period, you have until April 28, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
CTPartners Executive Search Inc., together with its subsidiaries, provides retained executive search services worldwide. It facilitates the recruitment and hiring of C-level executives, such as chief executive officers, chief financial officers, chief legal officers, chief marketing officers, and chief human resource officers, as well as other senior executives and board members. The complaint alleges that during the Class Period, defendants repeatedly highlighted the Company's reputation within the industries in which it operated based on the "integrity" of its employees and on the strength and qualifications of its search consultants. Further, the Company represented that these consultants were promoted based on "objective" and "transparent" criteria related to their merits, and that this purported meritocracy had been and would be a key to the Company's ongoing success.
On December 8, 2014, an article in The New York Post reported that an "explosive" complaint had been filed with the Equal Employment Opportunity Committee by a former CTPartners employee, which reportedly detailed CTPartners as "a den of discrimination where women are stripped of profitable accounts, held to a higher standard than their male colleagues and subjected to lewd behavior." That same day, CTPartners withdrew a stock offering that had been announced less than 24 hours earlier. As a result of this news, the price of CTPartners stock dropped $4.50 per share, a decline of 24% from the prior closing price.
On January 28, 2015, CTPartners withdrew its preliminary fourth quarter and year-end guidance provided only one week earlier and revised downward its earnings guidance for the first quarter and full fiscal year 2015. The Company stated that the downward revision was due to a $1.7 million increase in "compensation expense" for employee bonuses. In addition, CTPartners again withdrew a proposed stock offering, this one announced only two days prior. On this news, the price of CTPartners stock dropped $2.17 per share to close at $4.35 per share on January 29, 2015, a one-day decline of more than 33%.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.